Congress Raises Alarm Over SEBI Probe After Hindenburg Alleges Conflict of Interest

The Congress party criticised SEBI chief Madhabi Buch on Saturday, using the Latin phrase "Quis Custodiet Ipsos Custodes" or "who will guard the guards themselves." This came after US short seller Hindenburg accused Buch and her husband of having stakes in obscure offshore funds linked to the Adani money-siphoning case.

In a blog post, Hindenburg highlighted that 18 months after its report on Gautam Adani, SEBI showed little interest in Adani's alleged undisclosed web of Mauritius and offshore shell entities. The whistleblower documents cited by Hindenburg claimed that Madhabi Buch and her husband had stakes in these offshore funds involved in the scandal.

Congress General Secretary's Reaction

Congress general secretary Jairam Ramesh tagged the Hindenburg post on X, stating, "Quis Custodiet Ipsos Custodes who will guard the guards themselves." He further commented on the sudden adjournment of Parliament, saying, "Parliament was notified to sit till the evening of August 12th. Suddenly it got adjourned sine die on the afternoon of Aug 9th itself. Now we know why."

SEBI, which had been investigating the Adani group even before Hindenburg's report, informed a Supreme Court-appointed panel last year that it was probing 13 opaque offshore entities. These entities held between 14 per cent and 20 per cent across five publicly-traded stocks of the conglomerate. However, SEBI has not disclosed whether these two incomplete probes have since been concluded.

Hindenburg's allegations against Buch and her husband have added another layer of complexity to the ongoing investigations into the Adani group. The accusations have raised questions about SEBI's impartiality and effectiveness in handling such high-profile cases.

The Congress party's use of the Latin phrase underscores their concern over who is overseeing those in power. The allegations against Buch have intensified scrutiny on SEBI's role and actions concerning the Adani group.

The situation remains tense as both SEBI and the Adani group face increased pressure from various quarters. The outcome of these investigations could have significant implications for regulatory practices and corporate governance in India.

The controversy surrounding Madhabi Buch and her husband's alleged involvement in offshore funds continues to unfold. It highlights the need for transparency and accountability within regulatory bodies like SEBI.

As this story develops, it is crucial to monitor how SEBI responds to these allegations and whether any concrete actions are taken. The integrity of India's financial regulatory framework is at stake, making this a critical issue for all stakeholders involved.